Hedge Funds

Prentice, Sandelman and HBK keep capital from fleeing

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As requests to withdraw capital continue to multiply, managers are putting up gates, suspending redemptions and finding other creative ways to try to keep investors from leaving. The moves come just ahead of the end of the second quarter, as hedge funds reel from poor performance and difficult market conditions across the board.

Prentice Capital Management, the $1.5 billion hedge fund shop whose side pocket is full of illiquid investments, announced in a June 6 letter to investors that it was suspending redemptions and the calculation of net asset value. Prentice has since decided to calculate NAV on